04 28-13 jt results-q4

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[This is an English translation of summarized consolidated financial results prepared for the convenience of non-resident shareholders. Should there be any inconsistency between the translation and the official Japanese text, the latter shall prevail. Please refer to the supplementary document “Overview of Consolidated Financial Results for FY 3/2013 and Full-term Forecast for FY 3/2014” and JT’s website (http://www.jti.co.jp/) for other information.]

April 25, 2013 Consolidated Financial Results

for the Fiscal Year Ended March 31, 2013 <under IFRS>

Name of the Listed Company: JAPAN TOBACCO INC. (Stock Code: 2914) Listed Stock Exchanges: Tokyo and Osaka Stock Exchanges URL: http://www.jti.co.jp/ Representative: Mitsuomi Koizumi, President,

Chief Executive Officer and Representative Director Contact: Yasuyuki Tanaka, Senior Vice President and Chief Communications Officer Telephone: +81-3-3582-3111 Scheduled date of Annual General Meeting of Shareholders: June 21, 2013 Scheduled date to file Securities Report: June 21, 2013 Scheduled starting date of the dividend payments: June 24, 2013 Drawing up supplementary documents on financial results: Yes Holding investors’ meeting: Yes (for analysts and institutional investors)

(Yen amounts are rounded to the nearest million, unless otherwise noted.) 1. Consolidated financial results for the fiscal year ended March 31, 2013 (from April 1, 2012

to March 31, 2013) (1) Consolidated operating results (Percentages indicate year-on-year changes.)

Revenue Operating profit Profit before income taxes Profit for the year

Year ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % March 31, 2013 2,120,196 4.2 532,360 15.9 509,560 15.5 351,518 7.0 March 31, 2012 2,033,825 (1.2) 459,180 14.4 441,355 14.6 328,559 32.1

Profit attributable to owners of the parent

company Comprehensive income

for the year Basic earnings per share Diluted earnings per share

Year ended Millions of yen % Millions of yen % Yen Yen March 31, 2013 343,612 7.1 544,356 183.3 181.07 180.99 March 31, 2012 320,883 31.9 192,143 – 168.50 168.44

Ratio of profit to equity attributable to owners of

the parent company

Ratio of profit before income taxes to total

assets Ratio of operating profit

to revenue

Year ended % % % March 31, 2013 20.0 13.6 25.1 March 31, 2012 20.3 12.1 22.6

Reference: Share of profit (loss) in investments accounted for using the equity method: Fiscal year ended March 31, 2013: ¥2,775 million; Fiscal year ended March 31, 2012: ¥2,047 million

Note: The Company conducted a share split at a ratio of 200 to one with July 1, 2012 as effective date. Consequently, basic earnings per share and diluted earnings per share are calculated on the assumption that this share split was conducted at the beginning of the previous fiscal year.

http://www.jti.co.jp/

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(2) Consolidated financial position

Total assets Total equity Equity attributable to owners of the parent

company

Ratio of equity attributable to owners of the parent company

to total assets

Equity attributable to owners of the parent company per share

As of Millions of yen Millions of yen Millions of yen % Yen March 31, 2013 3,852,639 1,892,012 1,806,125 46.9 993.75 March 31, 2012 3,667,007 1,714,626 1,634,050 44.6 858.09

Note: The Company conducted a share split at a ratio of 200 to one with July 1, 2012 as effective date. Consequently, equity attributable to owners of the parent company per share is calculated on the assumption that this share split was conducted at the beginning of the previous fiscal year.

(3) Consolidated cash flows

Net cash flows from (used in)

operating activities


investing activities


financing activities

Cash and cash equivalents at the end of

the year Year ended Millions of yen Millions of yen Millions of yen Millions of yen

March 31, 2013 466,608 (147,928) (569,473) 142,713 March 31, 2012 551,573 (103,805) (279,064) 404,740

2. Cash dividends

Annual dividends per share

Total amount of dividends (total)

Payout ratio (consolidated)

Ratio of dividends to equity

attributable to owners of the

parent company (consolidated)

First

quarter-end

Second quarter-

end

Third quarter-

end Fiscal

year-end Total

Yen Yen Yen Yen Yen Millions of yen % % Year ended

March 31, 2012 - 4,000.00 - 6,000.00 10,000.00 95,215 29.7 6.0

Year ended March 31, 2013 - 30.00 - 38.00 68.00 126,193 37.6 7.3

Year ending March 31, 2014 (Forecast)

- 46.00 - 46.00 92.00 40.3

Note: The Company conducted a share split at a ratio of 200 to one with July 1, 2012 as effective date. Consequently, payout ratio (consolidated) and ratio of dividends to equity attributable to owners of the parent company (consolidated) are calculated on the assumption that this share split was conducted at the beginning of the previous fiscal year. However, the figures presented for annual dividends per share for the fiscal year ended March 31, 2012 are those from before this share split was conducted.

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2014

(from April 1, 2013 to March 31, 2014) (Percentages indicate year-on-year changes.)

Revenue Operating profit Profit before

income taxes Profit for the year Profit attributable to owners of the parent company

Basic earnings per share

Millions of yen %

Millions of yen %

Millions of yen %

Millions of yen %

Millions of yen % Yen

Year ending March 31, 2014 2,368,000 11.7 616,000 15.7 598,000 17.4 423,000 20.3 415,000 20.8 228.34

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Notes (1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in change in

scope of consolidation): Yes Excluded: One company (Name: JT Canada LLC II Inc.)

(2) Changes in accounting policies and changes in accounting estimates

a. Changes in accounting policies due to revisions in accounting standards under IFRS: None b. Changes in accounting policies due to other reasons: None c. Changes in accounting estimates: None

(3) Number of shares issued (common stock) a. Total number of shares issued at the end of the period (including treasury shares)

As of March 31, 2013 2,000,000,000 shares As of March 31, 2012 2,000,000,000 shares

b. Number of treasury shares at the end of the period

As of March 31, 2013 182,510,100 shares As of March 31, 2012 95,705,200 shares

c. Average number of shares during the period

Fiscal year ended March 31, 2013 1,897,635,824 shares Fiscal year ended March 31, 2012 1,904,294,800 shares

Note: The Company conducted a share split at a ratio of 200 to one with July 1, 2012 as effective date. Consequently, number of shares is calculated on the assumption that this share split was conducted at the beginning of the previous fiscal year.

(Reference) Summary of non-consolidated results

Non-consolidated financial results for the fiscal year ended March 31, 2013 (from April 1, 2012 to March 31, 2013) <under Japanese GAAP> (1) Non-consolidated operating results (Percentages indicate year-on-year changes.)

Net sales Operating income Ordinary income Net income

Year ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % March 31, 2013 781,067 6.3 209,157 4.0 210,568 6.3 149,773 4.9 March 31, 2012 734,902 (1.9) 201,045 8.4 198,071 8.3 142,726 343.0

Net income per share Diluted net income per share

Year ended Yen Yen March 31, 2013 78.93 78.89 March 31, 2012 74.95 74.92

Note: The Company conducted a share split at a ratio of 200 to one with July 1, 2012 as effective date. Consequently, net income per share and diluted net income per share are calculated on the assumption that this share split was conducted at the beginning of the previous fiscal year.

(2) Non-consolidated financial position Total assets Net assets Equity ratio Net assets per share

As of Millions of yen Millions of yen % Yen March 31, 2013 2,784,914 1,714,529 61.5 942.65 March 31, 2012 3,016,651 1,924,739 63.8 1,010.20

Reference: Equity: As of March 31, 2013: ¥1,713,255 million; As of March 31, 2012: ¥1,923,711 million

Note: The Company conducted a share split at a ratio of 200 to one with July 1, 2012 as effective date. Consequently, net assets per share are calculated on the assumption that this share split was conducted at the beginning of the previous fiscal year.

Note: Figures above in the table of non-consolidated financial results are prepared in accordance with Japanese GAAP.

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* Indication regarding execution of audit procedures At the time of disclosure of this financial results report, the audit procedures for financial statements in accordance with the Financial Instruments and Exchange Act are in progress.

* Proper use of earnings forecasts, and other special matters

(1) The forward-looking statements, including forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable by the Company. Actual business and other results may differ substantially due to various factors. These forward-looking statements are not intended to be construed as our assurance for it to materialize in the future. Please refer to “Forward-looking and cautionary statements” on page 5 and in the supplementary document to the investors’ meeting, “Overview of Consolidated Financial Results for FY 3/2013 and Full-term Forecast for FY 3/2014” for the suppositions that form the assumptions for earnings forecasts and cautions concerning the use of earnings forecasts.

(2) The Company conducted a share split at a ratio of 200 to one with July 1, 2012 as effective date. (3) Please refer to JT’s website (http://www.jti.co.jp/) for materials for investors’ meeting.

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Forward-looking and cautionary statements

This material contains forward-looking statements about the business results of the Company and the JT Group. These forward-looking statements may include such expressions as “we believe,” “we expect,” “we anticipate,” “we forecast,” “we foresee,” “plan,” “strategy” and “possibility,” as well as similar expressions about future business activities, business results, events or assumed conditions. Forward-looking statements are provided on the basis of the judgments, predictions, expectations, plans, perceptions and evaluations, etc., of management based on the information that is currently available. These forward-looking statements are not intended to be construed as our assurance for it to materialize in the future, and we assume no duty or obligation to update any forward-looking statement or to advise of any change in the assumptions and factors on which they are based. Furthermore, forward-looking statements are subject to a wide range of risks and uncertainties, and actual business results may differ materially from the projections in the forward-looking statements. At present, the main envisaged risks and uncertainties or other factors that could cause actual results to differ materially from those expressed in any forward-looking statement include, without limitation:

1 health concerns relating to the use of tobacco products; 2 legal or regulatory developments and changes, including, without limitation, tax increases and

restrictions on the sale of tobacco products, obligations to purchase leaf tobacco sourced in Japan, restrictions on packaging and labeling, restrictions on the marketing and usage of tobacco products, and governmental investigations and privately imposed smoking restrictions;

3 litigation in Japan and elsewhere; 4 our ability to further diversify our business beyond the tobacco industry; 5 our ability to successfully expand internationally and make investments outside of Japan; 6 competition, changing consumer preferences and decreasing tobacco demand; 7 the impact of any acquisitions or similar transactions; 8 local and global economic conditions; 9 fluctuations in foreign exchange rates and the costs of raw materials; and 10 natural disasters and other contingency situations.

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Consolidated financial statements (IFRS)

(1) Consolidated statement of financial position (Millions of yen)

As of March 31, 2012 As of March 31, 2013

Assets Current assets

Cash and cash equivalents 404,740 142,713 Trade and other receivables 327,767 387,837 Inventories 446,617 473,042 Other financial assets 27,361 29,103 Other current assets 123,163 177,858

Subtotal 1,329,649 1,210,552 Non-current assets held-for-sale 1,401 2,594 Total current assets 1,331,050 1,213,146

Non-current assets

Property, plant and equipment 619,536 672,316 Goodwill 1,110,046 1,316,476 Intangible assets 306,448 348,813 Investment property 67,387 58,995 Retirement benefit assets 14,371 14,825 Investments accounted for using the equity method 18,447 22,940 Other financial assets 67,548 71,781 Deferred tax assets 132,174 133,348 Total non-current assets 2,335,957 2,639,493

Total assets 3,667,007 3,852,639

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(Millions of yen)

As of March 31, 2012 As of March 31, 2013

Liabilities and equity Liabilities

Current liabilities Trade and other payables 298,663 312,741 Bonds and borrowings 211,766 44,301 Income tax payables 42,501 85,714 Other financial liabilities 8,039 8,550 Provisions 5,686 5,256 Other current liabilities 590,717 656,305

Subtotal 1,157,373 1,112,867 Liabilities directly associated with non-current assets held-for-sale 101 101

Total current liabilities 1,157,474 1,112,968

Non-current liabilities Bonds and borrowings 279,750 270,399 Other financial liabilities 20,994 18,844 Retirement benefit liabilities 315,020 343,095 Provisions 4,448 4,786 Other non-current liabilities 92,235 113,226 Deferred tax liabilities 82,460 97,309 Total non-current liabilities 794,906 847,658

Total liabilities 1,952,380 1,960,627

Equity

Share capital 100,000 100,000 Capital surplus 736,410 736,411 Treasury shares (94,574) (344,573) Other components of equity (376,363) (155,462) Retained earnings 1,268,577 1,469,749 Equity attributable to owners of the parent company 1,634,050 1,806,125 Non-controlling interests 80,576 85,887 Total equity 1,714,626 1,892,012

Total liabilities and equity 3,667,007 3,852,639

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(2) Consolidated statement of income and consolidated statement of comprehensive income Consolidated statement of income

(Millions of yen)

Fiscal year 2012

(From April 1, 2011 to March 31, 2012)

Fiscal year 2013


Revenue 2,033,825 2,120,196 Cost of sales (892,034) (899,392) Gross profit 1,141,791 1,220,804 Other operating income 48,512 42,165 Share of profit in investments accounted for using the equity method 2,047 2,775

Selling, general and administrative expenses (733,169) (733,385) Operating profit 459,180 532,360 Financial income 5,603 5,493 Financial costs (23,429) (28,292) Profit before income taxes 441,355 509,560 Income taxes (112,795) (158,042) Profit for the year 328,559 351,518

Attributable to:

Owners of the parent company 320,883 343,612 Non-controlling interests 7,676 7,906 Profit for the year 328,559 351,518

Earnings per share

Basic (Yen) 168.50 181.07 Diluted (Yen) 168.44 180.99

Reconciliation from operating profit to Adjusted EBITDA (Millions of yen)

Fiscal year 2012


Fiscal year 2013


Operating profit 459,180 532,360

Depreciation and amortization 118,845 116,462 Adjustment items (income) (29,932) (34,234) Adjustment items (costs) 29,039 7,536

Adjusted EBITDA 577,132 622,124

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Consolidated statement of comprehensive income (Millions of yen)

Fiscal year 2012


Fiscal year 2013


Profit for the year 328,559 351,518 Other comprehensive income

Exchange differences on translation of foreign operations (130,331) 216,118 Net gain (loss) on derivatives designated as cash flow hedges (166) 121

Net gain (loss) on revaluation of financial assets measured at fair value through other comprehensive income 4,750 4,799

Actuarial gains (losses) on defined benefit retirement plans (10,669) (28,200) Other comprehensive income (loss), net of taxes (136,416) 192,838 Comprehensive income (loss) for the year 192,143 544,356

Attributable to:

Owners of the parent company 185,425 536,068 Non-controlling interests 6,718 8,288 Comprehensive income (loss) for the year 192,143 544,356

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(3) Consolidated statement of changes in equity (Millions of yen)

Equity attributable to owners of the parent company

Share capital

Capital surplus

Treasury shares

Other components of equity

Subscription rights to share

Exchange differences on translation of

foreign operations

Net gain (loss) on derivatives designated as

cash flow hedges

Net gain (loss) on revaluation

of available-for-sale securities

As of April 1, 2011 100,000 736,410 (94,574) 763 (257,262) – 5,754 Cumulative effect of applying a new accounting standard

– – – – – (142) (5,754)

Profit for the year – – – – – – – Other comprehensive income (loss) – – – – (129,966) (166) –

Comprehensive income (loss) for the year – – – – (129,966) (166) –

Acquisition of treasury shares – – – – – – –

Disposal of treasury shares – – – – – – –

Share-based payments – – – 265 – – – Dividends – – – – – – – Changes in the ownership interest in a subsidiary without a loss of control

– – – – – – –

Transfer from other components of equity to retained earnings

– – – – – – –

Other increase (decrease) – – – – – – – Total transactions with the owners – – – 265 – – –

As of March 31, 2012 100,000 736,410 (94,574) 1,028 (387,228) (309) –

Profit for the year – – – – – – – Other comprehensive income (loss) – – – – 215,845 121 –

Comprehensive income (loss) for the year – – – – 215,845 121 –

Acquisition of treasury shares – – (250,000) – – – –

Disposal of treasury shares – 1 1 (2) – – –

Share-based payments – – – 247 – – – Dividends – – – – – – – Changes in the ownership interest in a subsidiary without a loss of control

– – – – – – –


– – – – – – –

Other increase (decrease) – – – – – – – Total transactions with the owners – 1 (249,999) 245 – – –

As of March 31, 2013 100,000 736,411 (344,573) 1,274 (171,383) (187) –

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(Millions of yen) Equity attributable to owners of the parent company

Non-controlling interests

Total equity

Other components of equity

Retained earnings

Total

Net gain (loss) on revaluation

of financial assets measured

at fair value through other

comprehensive income

Actuarial gains

(losses) on defined benefit retirement plans

Total

As of April 1, 2011 – – (250,745) 1,034,054 1,525,145 76,166 1,601,311 Cumulative effect of applying a new accounting standard

5,551 – (344) 97 (247) 47 (201)

Profit for the year – – – 320,883 320,883 7,676 328,559 Other comprehensive income (loss) 4,684 (10,009) (135,458) － (135,458) (958) (136,416)

Comprehensive income (loss) for the year 4,684 (10,009) (135,458) 320,883 185,425 6,718 192,143

Acquisition of treasury shares – – – – – – –

Disposal of treasury shares – – – – – – –

Share-based payments – – 265 – 265 – 265 Dividends – – – (76,172) (76,172) (2,138) (78,310) Changes in the ownership interest in a subsidiary without a loss of control

– – – (366) (366) (137) (503)


(89) 10,009 9,920 (9,920) – – –

Other increase (decrease) – – – – – (80) (80)

Total transactions with the owners (89) 10,009 10,185 (86,458) (76,273) (2,355) (78,628)

As of March 31, 2012 10,146 – (376,363) 1,268,577 1,634,050 80,576 1,714,626

Profit for the year – – – 343,612 343,612 7,906 351,518 Other comprehensive income (loss) 4,691 (28,201) 192,456 － 192,456 382 192,838

Comprehensive income (loss) for the year 4,691 (28,201) 192,456 343,612 536,068 8,288 544,356

Acquisition of treasury shares – – – – (250,000) – (250,000)

Disposal of treasury shares – – (2) – 0 – 0

Share-based payments – – 247 – 247 – 247 Dividends – – – (114,258) (114,258) (4,061) (118,319) Changes in the ownership interest in a subsidiary without a loss of control

– – – 17 17 (522) (505)


(2) 28,201 28,199 (28,199) – – –

Other increase (decrease) – – – – – 1,606 1,606

Total transactions with the owners (2) 28,201 28,444 (142,439) (363,993) (2,977) (366,970)

As of March 31, 2013 14,835 – (155,462) 1,469,749 1,806,125 85,887 1,892,012

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(4) Consolidated statement of cash flows (Millions of yen)

Fiscal year 2012


Fiscal year 2013


Cash flows from operating activities Profit before income taxes 441,355 509,560 Depreciation and amortization 118,845 116,462 Impairment losses 7,013 3,213 Interest and dividend income (3,646) (5,137) Interest expense 14,377 10,134 Share of profit in investments accounted for using the equity method (2,047) (2,775)

(Gain) loss on sale and disposal of property, plant and equipment, intangible assets, and investment property (22,444) (29,218)

(Increase) decrease in trade and other receivables (30,207) (24,118) (Increase) decrease in inventories 27,388 10,791 Increase (decrease) in trade and other payables (5,365) 1,576 Increase (decrease) in retirement benefit liabilities (9,686) (15,350) (Increase) decrease in prepaid tobacco excise taxes (1,785) (31,377) Increase (decrease) in tobacco excise tax payable 148,260 12,802 Increase (decrease) in consumption tax payable 14,807 (3,093) Other (13,002) 16,334

Subtotal 683,863 569,804 Interest and dividends received 6,181 6,764 Interest paid (16,006) (8,703) Income taxes paid (122,464) (101,258) Net cash flows from operating activities 551,573 466,608

Cash flows from investing activities

Purchase of securities (5,697) (19,161) Proceeds from sale and redemption of securities 21,622 3,426 Purchase of property, plant and equipment (95,705) (114,240) Proceeds from sale of investment property 34,545 33,425 Purchase of intangible assets (18,252) (18,611) Payments into time deposits (46,648) (26,647) Proceeds from withdrawal of time deposits 34,854 45,665 Purchase of investments in subsidiaries (33,622) (54,128) Proceeds from sale ofinvestments in subsidiaries 730 – Other 4,369 2,343 Net cash flows used in investing activities (103,805) (147,928)

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(Millions of yen)

Fiscal year 2012


Fiscal year 2013


Cash flows from financing activities Dividends paid to owners of the parent company (76,165) (114,236) Dividends paid to non-controlling interests (2,138) (4,009) Capital contribution from non-controlling interests 629 216 Increase (decrease) in short-term borrowings and commercial paper (2,408) (23,012)

Proceeds from long-term borrowings – 518 Repayments of long-term borrowings (59,879) (81,165) Redemption of bonds (133,333) (92,466) Repayments of finance lease obligations (5,268) (4,814) Acquisition of treasury shares – (250,000) Payments for acquisition of interests in subsidiaries from non-controlling interests (503) (505)

Other – 0 Net cash flows used in financing activities (279,064) (569,473)

Net increase (decrease) in cash and cash equivalents 168,704 (250,793) Cash and cash equivalents at the beginning of the year 244,240 404,740 Effect of exchange rate changes on cash and cash equivalents (8,204) (11,235) Cash and cash equivalents at the end of the year 404,740 142,713

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(5) Notes on premise of going concern No items to report.

(6) Notes to consolidated financial statements

(Segment information)

a. Outline of reportable segments

The reportable segments of the JT Group are determined based on the operating segments that are components of the JT Group about which separate financial information is available and are evaluated regularly by the Board of Directors in deciding how to allocate resources and in assessing performance.

The JT Group is mainly engaged in the manufacture and sale of tobacco products, prescription drugs, beverages and processed foods. With respect to tobacco products, operations are managed separately for domestic and overseas markets. The reportable segments of the JT Group are composed of five segments: “Domestic Tobacco Business,” “International Tobacco Business,” “Pharmaceutical Business,” “Beverage Business” and “Processed Food Business.” They are determined by types of products, characteristics, and markets. The Group changed its organization structure effective July 1, 2012, and the “Beverage Business” and the “Processed Food Business,” which were previously combined in “Food Business,” became individual reportable segments used by management in deciding how to allocate resources and in assessing performance. Accordingly, separate segment disclosures for the “Beverage Business” and the “Processed Food Business” have been included in the segment information since the second quarter ended September 30, 2012. The comparative segment information for the fiscal year ended March 31, 2012 is retrospectively adjusted. The “Domestic Tobacco Business” manufactures and sells tobacco products in domestic areas (which include duty-free shops in Japan and markets in China, Hong Kong, and Macau where the Company’s China Division operates). The “International Tobacco Business” manufactures and sells tobacco products overseas mainly through JT International S.A., which controls manufacturing and sales operations. The “Pharmaceutical Business” consists of research and development, and the manufacture and sale of prescription drugs. The “Beverage Business” consists of the manufacture and sale of beverages. The “Processed Food Business” consists of the manufacture and sale of processed foods and seasonings.

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b. Revenues and performances for reportable segments Revenues and performances for reportable segments are as follows. The Board of Directors assesses the segment performance and determines resource allocation after reviewing revenues and adjusted EBITDA. Since financial income, financial costs and income taxes are managed by the JT Group head office, these income and expenses are excluded from the segment performance. Transactions within the segments are based on mainly the prevailing market price.

For the fiscal year ended March 31, 2012

(Millions of yen) Reportable Segments

Other (Note 3)

Elimi-nation

Consoli-dated Domestic

Tobacco

Inter-national Tobacco (Note 2)

Pharma-ceutical Beverage Processed

Food Total

Revenue External revenue (Note 4) 646,187 966,255 47,407 188,768 170,652 2,019,269 14,556 – 2,033,825

Intersegment revenue 28,115 27,497 – 85 770 56,467 9,257 (65,724) – Total revenue 674,303 993,752 47,407 188,853 171,422 2,075,736 23,813 (65,724) 2,033,825

Segment profit (loss)

Adjusted EBITDA (Note 1) 262,257 314,755 (10,031) 14,584 5,416 586,981 (8,852) (997) 577,132

Other items

Depreciation and amortization 39,567 55,227 3,465 10,092 7,436 115,788 3,376 (319) 118,845

Impairment losses on other than financial assets 314 4,610 – – 413 5,336 1,677 – 7,013

Reversal of impairment losses on other than financial assets

5 – – – 77 82 – – 82

Share of profit (loss) in investments accounted for using the equity method

31 1,922 – – 13 1,966 81 – 2,047

Capital expenditures 56,224 39,141 3,897 8,102 7,308 114,671 4,321 (0) 118,992

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For the fiscal year ended March 31, 2013 (Millions of yen)

Reportable Segments Other

(Note 3)

Elimi-nation


Tobacco



Food Total

Revenue External revenue (Note 4) 687,138 1,010,655 53,158 185,478 168,747 2,105,177 15,019 – 2,120,196

Intersegment revenue 28,402 31,029 – 108 647 60,186 9,398 (69,583) –

Total revenue 715,541 1,041,683 53,158 185,586 169,394 2,165,362 24,417 (69,583) 2,120,196

Segment profit (loss)


Other items

Depreciation and amortization 41,074 51,101 3,440 10,072 7,141 112,828 3,947 (313) 116,462

Impairment losses on other than financial assets 14 322 – – 1,248 1,584 1,629 – 3,213

Reversal of impairment losses on other than financial assets

– – – – – – – – –

Share of profit (loss) in investments accounted for using the equity method

48 2,685 – – (11) 2,722 54 – 2,775

Capital expenditures 71,238 37,504 5,761 12,029 4,596 131,128 6,527 (206) 137,450

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Reconciliation from Adjusted EBITDA to profit before income taxes

For the fiscal year ended March 31, 2012

(Millions of yen) Reportable Segments

Other (Note 3)

Elimi-nation


Tobacco



Food Total


Depreciation and amortization (39,567) (55,227) (3,465) (10,092) (7,436) (115,788) (3,376) 319 (118,845)

Adjustment items (income) (Note 5) – 564 – – – 564 29,368 – 29,932

Adjustment items (costs) (Note 5) (13,426) (7,737) – – (434) (21,597) (7,443) – (29,039)

Operating profit (loss) 209,265 252,355 (13,497) 4,492 (2,454) 450,160 9,697 (677) 459,180 Financial income 5,603 Financial costs (23,429) Profit before income taxes 441,355

For the fiscal year ended March 31, 2013 (Millions of yen)

Reportable Segments Other

(Note 3)

Elimi-nation


Tobacco



Food Total


Depreciation and amortization (41,074) (51,101) (3,440) (10,072) (7,141) (112,828) (3,947) 313 (116,462)

Adjustment items (income) (Note 5) 1,200 395 – – – 1,595 32,639 – 34,234

Adjustment items (costs) (Note 5) (154) (3,057) – – (6,039) (9,250) 1,714 – (7,536)

Operating profit (loss) 241,292 289,541 (16,160) 2,357 (5,822) 511,208 21,434 (282) 532,360 Financial income 5,493 Financial costs (28,292) Profit before income taxes 509,560

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Notes: 1. For Adjusted EBITDA, depreciation and amortization and adjustment items (income and costs) are excluded from operating profit (loss).

2. The foreign subsidiaries group, which includes a core company of JT International S.A., that is part of the “International Tobacco Business” segment has December 31 as its fiscal year end date and the profit or loss for the period from January 1 to December 31 is included in the fiscal years ended March 31, 2012 and 2013, respectively.

3. “Other” includes business activities relating to rent of real estate and corporate expenses relating to corporate communication and operation of the head office.

4. Core revenue as part of the domestic tobacco business and the international tobacco business are as follows:

(Millions of yen)

Fiscal year 2012


Fiscal year 2013


Domestic Tobacco 611,925 654,000

International Tobacco 894,636 943,094

5. “Adjustment items (income)” include restructuring income of gain on sale of real estates. “Adjustment items (costs)” include restructuring costs of the closing down of the factory, the impact from revision to laws and regulations related to the mutual aid pension benefits system, cooperation fee for terminating leaf tobacco farming, and adjustments resulting from the ceasing of classification of non-current assets held-for-sale.

The breakdown of adjustment items (costs) is as follows: (Millions of yen)

Fiscal year 2012


Fiscal year 2013


Restructuring costs 14,052 11,811 Effect of revision to laws and regulations related to the mutual pension benefits plan

– (4,279)

Cooperation fee for terminating leaf tobacco farming

12,469 4

Adjustments of ceasing classification as non-current assets held-for-sale

2,518 –

Adjustment items (costs) 29,039 7,536

Restructuring costs for the fiscal year ended March 31, 2012 include costs of closing down of the Hofu factory in the “Domestic Tobacco Business” and the Hainburg factory in the “International Tobacco Business.” Restructuring costs for the fiscal year ended March 31, 2013 include costs of rationalization measures in the “International Tobacco Business” and the dissolution of the processed fishery products business in the “Processed Food Business.”

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c. Geographic information The regional breakdown of non-current assets and external revenue are as follows.

Non-current assets (Millions of yen)

Fiscal year 2012 As of March 31, 2012 Fiscal year 2013

As of March 31, 2013

Japan 556,102 577,208

Overseas 1,547,315 1,819,391

Consolidated 2,103,417 2,396,599

Note: Non-current assets are segmented by the location of the assets, and financial instruments, deferred tax assets and assets for retirement benefits are excluded.

External revenue

(Millions of yen)

Fiscal year 2012


Fiscal year 2013


Japan 1,051,702 1,089,661

Overseas 982,123 1,030,535

Consolidated 2,033,825 2,120,196

Note: The revenue is segmented by the sales destination.

d. Major customers information

The international tobacco business of the JT Group sells products to Megapolis group that engages in distribution and wholesale business in Russia, and other countries. The external revenue from the group is ¥236,050 million (11.6% of consolidated revenue) for the fiscal year ended March 31, 2012 and ¥268,566 million (12.7% of consolidated revenue) for the fiscal year ended March 31, 2013.

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(Per share information) (1) Basis of calculating basic earnings per share

a. Profit attributable to ordinary share holders of the parent company (Millions of yen)

Fiscal year 2012


Fiscal year 2013


Profit attributable to owners of the parent company 320,883 343,612 Profit not attributable to ordinary share holders of the parent company – –

Profit used for calculation of basic earnings per share 320,883 343,612

b. Weighted-average number of ordinary shares outstanding during the year

(Thousands of shares)

Fiscal year 2012


Fiscal year 2013


Weighted-average number of ordinary shares during the year 1,904,295 1,897,636

(2) Basis of calculating diluted earnings per share a. Profit attributable to diluted ordinary share holders

(Millions of yen)

Fiscal year 2012


Fiscal year 2013


Profit used for calculation of basic earnings per share 320,883 343,612 Profit adjustment – – Profit used for calculation of diluted earnings per share 320,883 343,612

b. Weighted-average number of diluted ordinary shares outstanding during the year

(Thousands of shares)

Fiscal year 2012


Fiscal year 2013


Weighted-average number of ordinary shares during the year 1,904,295 1,897,636 Increased number of ordinary shares under subscription rights to shares 745 918

Weighted-average number of diluted ordinary shares during the year 1,905,040 1,898,553

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(3) Adjusted diluted earnings per share (Millions of yen)

Fiscal year 2012


Fiscal year 2013


Profit used for calculation of adjusted diluted earnings per share 320,883 343,612 Adjustment items (income) (29,932) (34,234) Adjustment items (costs) 29,039 7,536 Adjustments on income tax expense and non-controlling interests in relation to the above 2,025 12,772

Income tax expense related to revaluation loss on subsidiaries and associates (31,207) –

Adjusted profit for the year 290,808 329,687 Adjusted diluted earnings per share (Yen) 152.65 173.65

The weighted-average number of ordinary shares during the year and the weighted-average number of diluted ordinary shares during the year reflect the effect of the share split conducted at a ratio of 200 to one with June 30, 2012 as record date and July 1, 2012 as effective date.

(Significant events after the reporting period) No items to report.

04 28-13 jt results-q4

Business

Transcript of 04 28-13 jt results-q4